Startup exit tax comparison: Canada vs US
Explore how much entrepreneurs keep after a share sale in Canadian provinces and territories, California, Texas, Florida, New York City and Washington. Compare after-tax proceeds across exit values and 1, 2, 3 and 5 years of share ownership.
Compare the difference in after-tax proceeds versus Ontario, Canada, with one graph for each share holding period. Above zero means more proceeds; below zero means less. Each graph fits its own Y-axis range to make differences easier to see. All graphs share the same exit-value scale.
Exit value means your personal gross proceeds: 100% ownership and zero cost basis. After-tax proceeds are what you keep after modeled federal, state, local and Canadian provincial taxes, NIIT and additional AMT payable in the sale year.
Texas and Florida share a line because their modeled taxes are identical. Right-side labels show amounts at the maximum exit value. Hover or tap a graph for exact amounts; click an amount in a data table to open its full calculation breakdown.
Zero line: Ontario, Canada. Positive amounts are extra proceeds versus this province; negative amounts are less proceeds.
Difference in after-tax proceeds after holding for 1 year
At a $25M USD exit, you keep the most in Ontario. Even the best US result is $2.1M lower.
View data table
| Exit value | Ontario, Canada | California | New York City | Washington | Texas / Florida |
|---|---|---|---|---|---|
| $2,500,000 | $0 | −$506,840 | −$541,529 | −$203,504 | −$203,504 |
| $5,000,000 | $0 | −$1,051,798 | −$1,092,136 | −$415,961 | −$415,961 |
| $10,000,000 | $0 | −$2,141,712 | −$2,258,350 | −$840,875 | −$840,875 |
| $15,000,000 | $0 | −$3,231,626 | −$3,392,065 | −$1,265,790 | −$1,265,790 |
| $20,000,000 | $0 | −$4,321,541 | −$4,525,779 | −$1,690,704 | −$1,690,704 |
| $25,000,000 | $0 | −$5,411,455 | −$5,659,493 | −$2,115,618 | −$2,115,618 |
Difference in after-tax proceeds after holding for 2 years
At a $25M USD exit, you keep the most in Texas/Florida: $1.9M more than in Ontario. Smaller exits can favour Ontario.
View data table
| Exit value | Ontario, Canada | California | New York City | Washington | Texas / Florida |
|---|---|---|---|---|---|
| $2,500,000 | $0 | −$307,948 | −$342,637 | −$195,589 | −$4,611 |
| $5,000,000 | $0 | −$427,905 | −$468,244 | −$230,546 | +$207,932 |
| $10,000,000 | $0 | −$667,819 | −$784,458 | −$300,461 | +$633,017 |
| $15,000,000 | $0 | −$907,734 | −$1,068,172 | −$370,375 | +$1,058,103 |
| $20,000,000 | $0 | −$1,147,648 | −$1,351,887 | −$440,290 | +$1,483,188 |
| $25,000,000 | $0 | −$1,387,563 | −$1,635,601 | −$510,204 | +$1,908,274 |
Difference in after-tax proceeds after holding for 3 years
At a $25M USD exit, you keep the most in Texas/Florida: $3.1M more than in Ontario. Smaller exits can favour Ontario.
View data table
| Exit value | Ontario, Canada | California | New York City | Washington | Texas / Florida |
|---|---|---|---|---|---|
| $2,500,000 | $0 | −$139,588 | −$5,202 | +$95,708 | +$163,748 |
| $5,000,000 | $0 | −$62,046 | +$235,766 | +$382,813 | +$573,791 |
| $10,000,000 | $0 | +$93,040 | +$717,701 | +$955,399 | +$1,393,877 |
| $15,000,000 | $0 | +$248,126 | +$1,150,887 | +$1,527,984 | +$2,213,962 |
| $20,000,000 | $0 | +$25,016 | +$883,978 | +$1,474,875 | +$2,655,853 |
| $25,000,000 | $0 | −$214,898 | +$600,263 | +$1,404,960 | +$3,080,938 |
Difference in after-tax proceeds after holding for 5 years
At a $25M USD exit, you keep the most in Texas/Florida: $5.5M more than in Ontario.
View data table
| Exit value | Ontario, Canada | California | New York City | Washington | Texas / Florida |
|---|---|---|---|---|---|
| $2,500,000 | $0 | +$245,530 | +$548,866 | +$548,866 | +$548,866 |
| $5,000,000 | $0 | +$720,572 | +$1,356,409 | +$1,356,409 | +$1,356,409 |
| $10,000,000 | $0 | +$1,670,658 | +$2,971,495 | +$2,971,495 | +$2,971,495 |
| $15,000,000 | $0 | +$2,620,744 | +$4,586,580 | +$4,586,580 | +$4,586,580 |
| $20,000,000 | $0 | +$2,422,352 | +$4,377,013 | +$4,614,710 | +$5,053,188 |
| $25,000,000 | $0 | +$2,182,437 | +$4,060,799 | +$4,544,796 | +$5,478,274 |
How to compare startup exit taxes
Compare what you keep
Select a Canadian province or territory as your baseline. The difference view shows how much more or less you keep in each US jurisdiction. Switch to total proceeds to see the amount remaining after tax. The most favourable modeled regime depends on exit value, holding period and exemption eligibility.
Understand QSBS, LCGE and AMT
The model includes the US qualified small business stock (QSBS) exclusion, Canada’s lifetime capital gains exemption (LCGE), and additional alternative minimum tax (AMT) payable in the sale year. Federal, provincial, state and NYC taxes, plus US net investment income tax (NIIT), are included where applicable.
Read the holding-period graphs
Holding time starts when shares are acquired, often at exercise for employees. The graphs use 1, 2, 3 and 5 years to show how modeled tax treatment changes. Click a data-table amount to open that scenario in the startup exit tax calculator and inspect its breakdown.
Tax assumptions behind the comparison
Uses fixed 2025 tax assumptions, zero cost basis, 100% ownership and no other income, deductions or credits. US shares use the post-July 4, 2025 QSBS rules; Canadian LCGE starts at two years in this model. The charts compare sale-year proceeds and assume no future AMT recovery. Currency conversion uses $1.37 CAD per USD; the selected exit range is denominated in the displayed currency. See the calculator’s full assumptions and tax sources.